The production possibilities curve:  a)graphically illustrates the concept of absolute advantage.  b)graphically illustrates the concept of scarcity.  c)allows us to see the concept of absolute advantage.  d)shows the opportunity cost between all goods and services in an economy.  e)shows the relationship between absolute and comparative advantage.

Answer

 b)graphically illustrates the concept of scarcity.

Explanation

The production possibilities curve illustrates the varying amounts of two products which can be produced by limited amount of resources. According to PPF concept, the production of one good can only be increased if the production of the other related good is decreased. The PPF curve tells decision-makers how much of each good must be given off if they are to produce more of the other good. The PPF illustrates the concept of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.